Project Management Professional (PMP)® certification is a globally recognized credential for project managers. Risk management is one of the key knowledge areas in project management, and it's important to understand the steps involved in managing risks effectively. Here's a step-by-step guide to PMP® risk management:
Plan Risk Management:
Define the risk management approach for your project.
Determine the methodology to be used for risk analysis and prioritization.
Create a Risk Management Plan that outlines the roles, responsibilities, and risk management processes.
Identify Risks:
Identify potential risks that could impact the project. This can be done through brainstorming, checklists, historical data, or expert judgment.
Document identified risks in a Risk Register, which includes information like the risk description, potential impact, probability, and owner.
Perform Qualitative Risk Analysis:
Assess the qualitative aspects of each identified risk. This involves assigning a risk score based on impact and probability.
Use a Risk Probability and Impact Matrix to prioritize risks.
Perform Quantitative Risk Analysis:
For high-priority risks, perform a quantitative analysis. This includes assigning monetary values to the risks and determining the overall project risk exposure.
Plan Risk Responses:
Develop strategies to address identified risks. There are four response strategies: Avoid, Transfer, Mitigate, and Accept.
Create a Risk Response Plan that details the actions to be taken for each risk, including owners and deadlines.
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